CCI index is above 200 points, which means the market is strong. It is particularly important to note that its usage is particularly suitable for the boom and bust stage.
The specific usage is as follows:
When 1. CCI is positive, and it is regarded as a bull market; When it is negative, it is considered as a short market;
2. Under normal market conditions, CCI fluctuates between 100; Strong market, CCI will exceed100;
3.CCI & gt； On 100, purchase until CCI.
4. CCI <-100, exhaust to CCI>；; -100, supplement.
It was first used to judge the futures market, and later used to judge the stock market, and was widely used. Different from most technical analysis indexes invented only by using the closing price, opening price, highest price or lowest price of a stock, CCI index is a unique technical index, which introduces the concept of the average interval deviation between the price and the stock price in a fixed period according to the statistical principle and emphasizes the importance of the average absolute deviation of the stock price in the technical analysis of the stock market.
Compared with other overbought and oversold indicators, it has its own uniqueness. Most overbought and oversold indicators, such as KDJ and W%R, have an upper and lower bound of "0- 100", so they are more suitable for judging the general normal market, and when the price trend of those stocks rises or falls in a short time, the indicator may be passivated. However, CCI index fluctuates between positive infinity and negative infinity, so there will be no passivation of the index, which will help investors to better judge the market, especially those abnormal markets with short-term ups and downs.